US intelligence agencies have assessed that Iran now has the capability to effectively shut down the Strait of Hormuz at will, giving Tehran a powerful new tool to disrupt the global economy despite a framework peace agreement expected to be formally signed later this week, according to a CNN report citing sources familiar with the assessments.

Hegseth said the U.S. naval blockage in Iran is "impenetrable" and 125 million barrels of oil have now exited the Gulf, "showing that we control the strait."

Iran has left open the possibility it could toll ships passing through the strait.